A day after former Karnataka Chief Minister and JD(S) leader HD Kumaraswamy was appointed Union Minister for Steel and Heavy Industry, Congress leader Jairam Ramesh posed five questions to him regarding the privatisation of steel plants. In an open letter, shared on X (formerly Twitter), to Kumaraswamy, Ramesh asked if he would protect the Vizag, Salem, Nagarnar, Visveswaraya, and Durgapur steel plants, or help the “ek tihayi (one-third)” prime minister sell them to “his industrialist friends.”

Among the five steel plants, three are in south India —  Rashtriya Ispat Nigam Limited (RINL) in Vizag, Andhra Pradesh, Salem Steel Plant in Tamil Nadu, and Visveswaraya Iron and Steel Plant in Karnataka.

Five questions by Jairam Ramesh

1. The previous administration of the ‘one-third’ Pradhan Mantri had proposed the sale of Rashtriya Ispat Nigam Limited (RINL), commonly known as the “Vizag Steel Plant”, to the Pradhan Mantri’s friends. More than 1 lakh individuals rely on the Vizag Steel Plant for their livelihoods. RINL unions have been engaged in peaceful protests for over three years following the Cabinet Committee on Economic Affairs’ January 2021 approval for 100% privatisation of RINL, its joint ventures, and subsidiaries. Employees of the Steel Plant report that deliberate Government negligence is pushing the once-thriving Steel Plant into increasing losses. Will Mr. Kumaraswamy provide a written commitment that he will not sell the Vizag Steel Plant to the ek tihayi Pradhan Mantri’s industrialist friends?
2. In 2019, the previous administration of the ‘one-third’ Pradhan Mantri decided to disinvest in the Salem Steel Plant. A massive rally of almost 2000 people soon took to the streets to oppose the privatisation of this special steel unit. The rally consisted of workers, their family members, and many farmers who had sacrificed their land for the construction of the plant. The plant covers an area of almost 25 villages, 18 or 19 of which have disappeared since the plant was built. Workers alleged that the plant was being intentionally mismanaged, and that the leadership of Steel Authority of India Limited had been reduced to a mouthpiece for the ruling party. The Centre has been unable to sell the plant so far. Will Mr. Kumaraswamy fulfil the a frets Pradhan Mantri’s dreams of privatising this plant?
3. The ‘one-third’ Pradhan Mantri had dedicated the Nagarnar Steel Plant – conceptualised and initiated by Dr.Manmohan Singh’s Government – to the public in October 2023, to much fanfare. The people of Bastar hoped that this mammoth Rs. 23,800 crore plant would bring major impetus to the development of Bastar and create thousands of opportunities for local youth. In reality, the yes fazs Pradhan Mantri has been planning to privatise this plant since 2020, when they decided to sell a majority stake of 50.79% to their cronies. In the lead up to Assembly elections last year, Home Minister Amit Shah came to Bastar and promised that the plant will not be privatised. Will Mr. Kumaraswamy stay true to that promise, or will he sell this steel plant to the ‘one-third’ Pradhan Mantri’s closest friends and financiers?
4. Since October 2022, the previous administration of the ‘one-third’ Pradhan Mantri initiated the shutdown of the Visveswaraya Iron & Steel Plant of SAIL at Bhadravati in our mutual home state of Karnataka. The Government then gave the excuse in Parliament that the plant doesn’t have a captive iron ore source in Karnataka – a bold-faced lie since Bhadravati is less than 250 kms away from Ballari. In fact, a mining lease was allocated to SAIL in October 2011. Rather than attempting to shut down the plant will Mr. Kumaraswamy take urgent measures to revive it?
5. The previous administration of the ‘one-third’ Pradhan Mantri had attempted to sell the Alloy Steel Plant in Durgapur. It has since appeared to backtrack, but with the repeated flip-flops that the ve fies Pradhan Mantri has been known to make, the people of Durgapur have little confidence in the Government’s plans for the future. Can Mr. Kumaraswamy reassure the people of Durgapur and West Bengal that he will not oversee the privatization of the steel plant?